UTAH MEDICAL PRODUCTS,
UTMD Announces Self-Tender for 16% of Its
Contact: Paul Richins
Salt Lake City, Utah - Utah Medical Products, Inc. (Nasdaq:UTMD) announced today that it intends to repurchase at a price of $8.20 per share up to 1,000,000 of its shares, if tendered and not withdrawn by shareholders on or before September 15 representing approximately 16% of its currently outstanding shares. The offering price is approximately 17% higher than the average price of UTMD shares trading in the open market during the last twelve months. The highest trading price during the last twelve months was $8.19.
The tender offer will commence August 17, or as soon as possible thereafter, and will expire twenty business days thereafter, unless extended by the Company. If the offer is over-subscribed, shares will be purchased first from shareholders owning fewer than 100 shares and tendering all of such shares and then from all other shares tendered on a prorata basis. The Company reserves the right to purchase more than 1,000,000 shares. The tender offer will not be conditioned on any minimum number of shares being tendered.
The Board of Directors of the Company has approved the tender offer but neither the Company nor the Board of Directors is making any recommendation to shareholders as to whether to tender or refrain from tendering their shares. Shareholders must make their own decision whether or not to tender their shares and, if so, how many shares to tender.
According to Chairman & CEO Kevin Cornwell, "UTMD has a very healthy business with cash flows capable of servicing the additional debt it will incur. The Company can afford to make an investment that by antidilution will substantially enhance the value of shares held by its shareholders confident in UTMDs future, who wish to continue holding UTMDs shares, by giving investors who are tired of the low share price an opportunity to sell their shares at a premium over the current price." Selling shareholders will have the added benefit of avoiding brokerage commissions and odd lot fees. UTMD has obtained committed financing for the self-tender in the form of a revolving line of credit from its bank.
This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any shares of the Companys common stock. The solicitation of offers to buy the Companys common stock will only be made pursuant to the offer to purchase and related materials that the Company will be sending out to its shareholders shortly. Shareholders should carefully read the offer to purchase and related materials that the Company will be sending out shortly because they contain important information, including various terms and conditions to the offer. Shareholders can obtain the offer to purchase and related materials free at the SECs website at http://www.sec.gov, which site is also linked to UTMDs website at http://www.utahmed.com, or from UTMDs information agent, Registrar and Transfer Company, 10 Commerce Drive, Cranford, NJ 07016 Attn: Reorganization Department, Telephone: (800) 368-5948, Facsimile Number: (908) 497-2311. Shareholders are urged to carefully read these materials prior to making any decision with respect to the offer.
Safe Harbor Statement: Except for historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and are subject to the safe harbor provisions of that Act. The forward-looking statements set forth involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement. These risks and uncertainties, and assumptions regarding the Companys future operations and performance, could prove inaccurate and, therefore, there can be no assurance that the forward-looking statements will prove to be accurate.
Utah Medical Products, Inc., with particular interest in healthcare for women and their babies, develops, manufactures, assembles and markets a broad range of disposable and reusable specialty medical devices designed for better health outcomes for patients and their care-providers.